Forex Tracking Rates Explained | Why CAD and GBP was Strong? (June 3, 2021) Forex Trade Signal Review

Both the Canadian Dollar and the British Pound was strong yesterday and this is the reason why we created a video about why and how it happened. As a Filipino Forex Trader, we must understand that the currency's strength is determined by the interaction of a variety of local and international factors such as the demand and supply in the foreign exchange markets; also included is the interest rates of the central bank; economic events like inflation and growth in the domestic economy (GDP); and the country's balance of trade.

But what exactly does it mean for a currency to be “strong” or “weak?” A currency is “strong” if it is becoming more valuable relative to another country's currency. Conversely, a currency is considered “weak” if it is becoming less valuable versus another country's currency.

Using our website, we can easily check the currency performance of CAD and GBP by simply clicking the Currency Monitoring Chart.

Forex Tracking Rates Explained | Why CAD and GBP was Strong? (June 3, 2021) Forex Trade Signal Review

This is the data that causes a stronger ⬆️CAD and moved ↘️USD/CAD down.

4:30  USD  API Weekly Crude Oil Stock
Actual:            -5.360M 
Forecast:        -2.114M 
Previous:        -0.439M

API Weekly Crude Oil Stock | Forex Tracking Rates Explained | Why CAD and GBP was Strong? (June 3, 2021) Forex Trade Signal Review

The American Petroleum Institute reports inventory levels of US crude oil, gasoline and distillates stocks. The figure shows how much oil and product is available in storage. The indicator gives an overview of US petroleum demand.

If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. The same can be said if a decline in inventories is less than expected.
If the increase in crude is less than expected, it implies greater demand and is bullish for crude prices. The same can be said if a decline in inventories is more than expected.

Is the value of the Canadian dollar correlated to oil prices?

USD/CAD and Crude Oil are negatively correlated, meaning that when one instrument moves higher, the other moves lower.

U.S. crude stockpiles fell sharply last week as the seasonal pickup in demand over the summer months gets underway.  U.S. crude inventories fell by 5.36 million barrels for the week ended May 27, according to an estimate released Tuesday by the American Petroleum Institute. That compared with a draw of 439,000 million barrels reported by the API for the previous week. [Marketwatch]

Meanwhile, The UK has announced zero daily Covid deaths within 28 days of a positive test for the first time since March 2020. The latest figures also reported another 3,165 new cases, compared with 3,383 on Monday and 2,493 one week ago. [BBC]

Forex Tracking Rates Explained | Why CAD and GBP was Strong? (June 3, 2021) Forex Trade Signal Review

#DailyBrief | Things traders need to know today:

Thursday, June 3, 2021

🏦  US stocks posted small gains on Wednesday, with the energy sector leading the move while meme stocks surged. Investors remained cautious ahead of Friday’s job report. Major European indices increased and the Australian benchmark hit another record high.

💵  The US dollar index (USDX) ended the session unchanged at 89.87 after retreating from intraday high 90.21, while the yield on 10-year Treasury trended lower to 1.587%. USDJPY was up to 109.57.

💶  EUR/USD was little changed at 1.2211. Official data showed that producer prices in the Eurozone grew 1.0% on month in April (as expected). Retail sales in Germany dropped 5.5% on month in April (-2.5% expected). 

🇬🇧  GBP ended higher at 1.4170, with the UK reporting zero Covid death for the first time since March 2020.

🇦🇺  AUD was flat at 0.7751 despite the better-than-expected Australian Q1 GDP. Retail sales data is scheduled for release today. 

🇳🇿  NZD dipped to 0.7235. 

🇨🇦  USDCAD fell to 1.2034, the lowest closing price since 2015.

💰  Gold advanced to $1908.24. 

🛢  WTI crude (SpotCrude) extended the gains to $68.70, the highest since October 2018. US crude inventories declined by 5.36 million barrels last week. 

🥇  Bitcoin rose 5% to levels above $38,000, and Ether jumped 7% to $2,700. 

🥊 Boxer-turned-politician Manny Pacquiao is emerging as an obstacle to Philippine President Rodrigo Duterte’s succession plans. [📌  bloom.bg/3z0JBkq]


TRADE SIGNAL SUMMARY: (Thursday, June 3, 2021)

EUR/USD ⬇️SELL⬇️  @  1.22100

USD/JPY  ⬇️SELL⬇️  @ 109.700

USD/CAD  ⬇️SELL⬇️  @ 1.20400

XAU/USD  ⬆️BUY⬆️  @ 1905

GBP/USD  ⬆️BUY⬆️  @ 1.41600

GBP/JPY  ⬆️BUY⬆️  @ 155.300

NZD/USD  ⬇️SELL⬇️  @ 0.72235

AUD/USD  ⬇️SELL⬇️  @ 0.77425